TEM Enterprises dba Xtra Airways 2012-10-3

About this Order

This consent order concerns violations of certain consumer protection provisions of the Department of Transportation’s Public Charter regulations by TEM Enterprises d/b/a Xtra Airways, a direct air carrier for a number of Public Charter programs filed by Southern Sky Air & Tours, d/b/a Myrtle Beach Direct Air & Tours (Direct Air). In violation of 14 CFR Parts 212 and 380, Xtra Airways operated numerous Public Charter flights on behalf of Direct Air without first receiving the full charter price for those flights, thereby operating on the basis of a prospective payment or credit and it failed to make reasonable efforts to ascertain before undertaking Public Charter flights that the charter operator was in compliance with 14 CFR Part 380. In addition, subsequent to the cessation of Direct Air’s operations and in violation of 14 CFR Parts 212 and 380, Xtra Airways cancelled charter flights less than ten days before the scheduled departure date and failed to return to their points of origin all passengers who purchased round-trip transportation on Xtra Airways’ operated Public Charter flights and whom Xtra Airways had already transported on their outbound flights. These activities constituted unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712. This order directs Xtra Airways to cease and desist from future violations of section 41712 and the aforementioned Federal regulations and assesses the carrier a compromise civil penalty of $300,000.